Investor confidence was rattled after an unexpectedly high inflation report released on October 14, 2024, dampening expectations of an RBI rate cut in December.
- Sensex dropped by 153 points, closing at 81,820.
- Nifty slipped by 71 points, finishing the day at 25,057.
This overall negative sentiment was primarily driven by the oil & gas, automobile, and metal sectors, all of which underperformed.
While the broader market indices fared better—BSE Midcap ended 0.3% higher and BSE Smallcap gained over 1%—the general mood across the stock market was muted.
Impact on the stock market
The sector-wise performance painted a clear picture of which stocks led the market decline. Here’s a breakdown:
- Nifty Metal Index: Down by 1.5%, driven by poor performances from Hindalco, Tata Steel, and Vedanta. Investors in these stocks faced another challenging day as the metal sector continued its losing streak.
- Nifty Auto Index: The auto sector also struggled, with a near 1% decline. Leading the fall were Bajaj Auto, Tata Motors, and Maruti Suzuki. The auto sector, which relies heavily on consumer loans, is particularly sensitive to interest rate decisions. The looming possibility of delayed rate cuts spooked investors.
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| Sector/Index | Performance |
| IT & BPM sector | -0.33% |
| Healthcare sector | -0.26% |
| Oil & Gas sector | -0.27% |
| Real estate sector | 2.05% |
| PSU Bank in India | -0.21% |
Top gainers today
| Company | Price | Change % |
| BPCL Share Price | 348.75 | +2.35 |
| ICICI Bank Share Price | 1,255.50 | +1.93 |
| Britannia Share Price | 6,068.70 | +1.52 |
| Bharti Airtel Share Price | 1,717.25 | +1.28 |
| Bharat Elec Share Price | 288.85 | +1.10 |
Top losers today
| HDFC Life Share Price | 714.25 | -3.56 |
| Bajaj Auto Share Price | 11,521.50 | -3.17 |
| Wipro Share Price | 532.95 | -3.02 |
| Bajaj Finance Share Price | 7,016.90 | -2.66 |
| Hindalco Share Price | 726.95 | -2.16 |
Market aftermath: Impact on stocks
Ericsson Bags Multi-Billion Dollar Contract
Swedish telecom giant Ericsson announced that it has secured a multi-billion dollar 5G equipment contract with Bharti Airtel. This follows a similar $3.6 billion contract with Vodafone Idea last month, shared between Ericsson, Nokia, and Samsung.
The demand for 5G technology in India has skyrocketed since 2023, cushioning Ericsson’s revenue from the slowdown in its U.S. market. While Ericsson’s shares rose by 1.8% following this news, the full impact of the contracts will be reflected in next year’s earnings, particularly as more deployments are scheduled for 2025.
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Wipro Stock Rises Ahead of Bonus Issue
IT major Wipro witnessed a 3% rise in its stock price as the market anticipated a board meeting on October 17 to consider a bonus issue. This would be Wipro’s fourth such action, following similar moves in 2019, 2017, and 2010.
Wipro will also announce its Q2 earnings on the same day, and analysts are expecting signs of recovery. The potential bonus issue and the company’s performance outlook are driving optimism among investors.
Premier Polyfilm Hits Upper Circuit for a Second Day
Microcap company Premier Polyfilm continued its upward momentum, hitting a 20% upper circuit for the second consecutive day. The stock has soared by 58% in just five days, driven by a strong September quarter performance.
- Net profit: Rs 7.42 crore, up by 44% year-over-year.
- Revenue: Rs 78.73 crore, a 3% rise compared to last year.
The company also announced plans for expansion, with the recent purchase of industrial land in Tamil Nadu. Investors are clearly bullish, given that Premier Polyfilm’s stock has increased by 122% on a year-to-date basis.
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Crude Oil: IndianOil and EverEnviro Push Biofuel Initiatives
In the energy sector, Indian Oil Corporation (IOC) announced a 50:50 joint venture with EverEnviro Resource Management to push biofuel adoption across India. The JV aims to integrate advanced biogas technologies to convert organic waste into Compressed Biogas (CBG), a renewable and cleaner alternative to traditional fossil fuels.
Oil & Gas: Reliance Industries (RIL), a heavyweight in both the Nifty 50 and Oil & Gas indices, tumbled by over 2% after reporting a 4.8% drop in consolidated net profit for Q2 FY25, amounting to Rs 16,563 crore.
This move aligns with IndianOil’s long-term goal of achieving Net Zero by 2046, which will also contribute to India’s Net-Zero target for 2070. By reducing dependence on imported fossil fuels and supporting rural economies, this initiative is expected to boost sustainable energy production in the coming years.
Conclusion
In summary, the Indian stock market had a tough day on October 15, 2024. Key indices like Sensex and Nifty ended lower, pulled down by oil & gas, automobile, and metal sectors, while rising inflation dashed hopes of a rate cut by the RBI. However, individual stocks like Ericsson, Wipro, and Premier Polyfilm offered bright spots in an otherwise challenging market environment.
Looking ahead, all eyes will be on Wipro’s bonus issue decision and Q2 results, as well as further developments in biofuel initiatives by IndianOil.
For more stock market insights, check out the StockGro blog.
